The much anticipated iPhone 8 might lead to as much as a 24% increase in Apple's stock price, according to research from UBS.
Shares closed at $153.67 Tuesday, and according to UBS analyst Steven Milunovich, they could climb as high as $190. The average analyst 12-month price target for Apple's stock is $163.80, according to Bloomberg data.
In a note sent out to clients on Wednesday, Milunovich wrote he expects an iPhone "supercycle" to drive higher revenues for Apple. The iPhone 8 is rumored to be more of an upgrade than the previously released iPhone 7, which could lead to more consumers upgrading when the device is released later this year.
The iPhone 8 is expected to be sold at a higher price than previous versions, leading to higher revenues, according to Milunovich. His analysis is based on sales growth of 15%, at an average selling price of $730 per phone. The analyst consensus estimate for gross margin in 2018 is 38.2%, while UBS estimates it will be higher at 39-40%.
UBS raised its price target to $170, with an upside of $190.